Ridgemont closes debut fund above target

The mid-market firm raised $735m for Ridgemont Equity Partners I, which has a portfolio of nine companies.

Charlotte, North Carolina-based Ridgemont Equity Partners has closed its first fund on $735 million, above its $675 million target.

Ridgemont Equity Partners I is the firm’s debut independent fund since spinning out of Bank of America in 2010. Last year, a group of investors including AlpInvest Partners, Goldman Sachs, Landmark Partners and StepStone Group helped Ridgemont make a financial break from its former parent company. Fund I attracted commitments from a diverse group of institutional investors in the US, Asia and Europe, the firm said in a statement.

“It took us about 18 months,” partner at Ridgemont Travis Hain told Private Equity International. “It being our debut fund, the challenge for us was to articulate a good, concise story.”

The fund focuses on mid-market buyouts and growth equity investments between $25 million and $75 million in sectors including basic industries and services, energy, healthcare and telecommunications, media and technology. 

Ridgemont has been busy since spinning out of BofA, having amassed a portfolio of nine companies, including Gallus BioPharmaceuticals, a maker of clinical and commercial-grade biologics products, and healthcare business Hometown Urgent Care. The firm has deployed nearly 50 percent of the fund. 

Last month, Ridgemont and US mid-market firm Post Oak Energy Capital committed $100 million to newly formed oil and gas exploration and production company Titan River Energy. Post Oak and and Ridgemont each invested $50 million in the transaction.

Ridgemont’s 25-person staff is led by Travis Hain, Trey Sheridan and Walker Poole. The firm’s principals have invested more than $3 billion across 115 companies during the past two decades.